Philippines

●3 What’s Your Cultural IQ?

1.The Philippine archipelago is comprised of 7,107 islands, over half of which are not inhabited. Which of these is not a large Philippine island?

a.Java

b.Luzon

c.Mindanao

ANSWER: a. Java is an island, but it is part of Indonesia.

2.True or False? Boogong and Balut are indigenous Philippine languages.

ANSWER: False. They are traditional delicacies. A rite of passage that will endear you to Filipinos consists of eating one of the few local dishes that foreigners are squeamish about. These include the foul-smelling shrimp paste called bogoong, or the boiled embryonic duck egg called balut.

3.Which of the following women have not served as president of the Philippines?

a.Gloria Macapagal-Arroyo

b.Imelda Marcos

c.Corazon Aquino

ANSWER: b. Imelda Marcos was the wife of former president Ferdinand E. Marcos.

●3 Tips on Doing Business in the Philippines

●Kinship is everything in the Philippines. You will be accepted more rapidly if you can explain your relationship to someone the Filipinos already know. Even if the relationship is distant (i.e., you are the friend of the brother of someone they know), it will help establish you as a related, connected person.

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Philippines

Philippines

●3 Country Background

History

The Philippine Islands were inhabited before recorded human history. To this day, one can find human cultures living there at every level of technology. Many Filipinos live in modern, bustling Pacific Rim cities, while others live in isolated tropical jungles. This cultural diversity began in the tenth century a.d., when the Chinese began to trade with Filipinos. Eventually, some Chinese stayed in the Philippines. Although ethnic Chinese represent a small percent of the Philippine population, they control about half of the nation’s commerce and banking. While many prominent Filipinos have Chinese ancestry, there is considerable hostility toward the Chinese dominance of business.

Arab traders introduced Islam to the Philippines in the fourteenth century. Concentrated in the southern islands, these Muslims fiercely resisted both Spanish and American authority. Their refusal to yield to colonial overlords is a source of pride to many Filipinos, Muslim and Christian alike.

The Portuguese navigator Magellan led a Spanish fleet to the Philippines in 1521 and named the islands after King Philip II of Spain. Spaniards subsequently ruled for 350 years and brought Catholicism to the islands, as well as the Latino attitudes and traditions that are now a major part of the Filipino makeup. After the Spanish-American War, the Philippines were ceded to the United States in 1898. Already fighting against their Spanish overlords, Filipinos had no desire to be ruled by another colonial power. The Philippine insurrection against the United States lasted over twelve years and cost the lives of hundreds of thousands of Filipinos. But after the war, the United States brought infrastructure development to the country. It was in the U.S.-built public schools that English became a predominant language. Under U.S. control, the nation became the Commonwealth of the Philippines in 1935.

In 1941, the Japanese conquest of the Philippines demonstrated to Filipinos that the United States was not unbeatable. The Philippines were liberated in 1945 by Allied troops, both U.S. and Filipino. Full independence for the Philippines came on July 4, 1946.

Type of Government

The Republic of the Philippines has been an independent nation since 1946. Many Filipinos see their history as a struggle against foreign domination, first by Spain, then by the United States.

The Republic of the Philippines is a unitary republic patterned after the United States. The president of the Philippines is both head of state and head of the government. There are two legislative houses: the Senate and the House of Representatives.

The first Philippine Constitution dates back to 1935. After the Philippines became an independent republic, U.S. military bases were a source of contention, a constant reminder of colonial domination. Furthermore, the USA exerted tremendous influence, as when it helped to keep the corrupt dictatorship of Ferdinand Marcos in power for twenty-one years! The end of the Cold War reduced the importance of the two major U.S. bases in the Philippines, Clark Air Force Base and Subic Bay Naval Base. While the U.S. and Philippine governments were negotiating over the future of the bases, Mount Pinatubo erupted in June 1991. Buried under volcanic ash, Clark Air Force Base was rendered unusable. A new deal was negotiated to allow Subic Bay Naval Base to remain open. President Corazon Aquino agreed, but the Philippine Senate rejected it. The Philippine people themselves were split over the issue; had it been put to a referendum, the majority might have voted to allow U.S. forces to remain at Subic Bay Naval Base.

In 1992 Corazon Aquino’s defense minister, Fidel Ramos, was elected president. He had a stable six-year term. Following President Ramos, a former movie star was elected in 1998—Joseph Estrada. His term in office was cut short because he was charged with taking bribes, and was impeached. After President Estrada capitulated, he was replaced by the vice president, Gloria Macapagal-Arroyo. President Arroyo won a second term in 2004.

The Philippines faces a future relatively free of foreign influences, but without the millions of dollars the U.S. military presence pumped into the economy. The country struggles with unemployment, a fluctuating economy, and a huge debt load, not to mention periodic natural disasters.

Current government data can be found at the Embassy of Philippines at www

.philippineembassy.org.

Cultural Note

Filipinos grow up in extended families and are rarely alone. Indeed, solitude makes most Filipinos uncomfortable. A foreigner’s desire for privacy is not usually understood. If you are sitting alone on a bus or in a cinema, a Filipino is likely to ignore all the empty seats and sit next to you. Such action is not about you; it is simply a cultural trait.

Philippines

Philippines

Language

Tagalog (Pilipino, Filipino) and English are the official languages of the Republic of the Philippines. There are eight major dialects: Tagalog, Cebuano, Ilocan, Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinense. The literacy rate is approaching 90 percent.

Ethnologue.com acknowledges 172 languages in the Philippines, 3 of which are extinct.

The Philippine View

The Philippines has no official religion, but approximately 83 percent of Filipinos consider themselves Roman Catholic. While only 9 percent of Filipinos are Protestant, their Evangelical sects are growing rapidly. There is also a Philippine Independent Church, which claims some 6 percent of the population (they were Roman Catholics but broke with Rome). Followers of Islam are concentrated in the south.

Thanks in part to the Catholic Church’s opposition to birth control, the Philippines has a very high birth rate. (Former President Estrada himself had at least ten children.)

Social scientists have found that most Filipinos have a fairly low uncertainty avoidance index. Societies that score high on this scale feel the need for creating rigid rules of behavior and extensive sets of laws to enforce them. At the opposite end of the scale, Philippine society and behavior exhibits flexibility and adaptability. The letter of the law is not strictly observed, and there are not regulations to cover every situation. This situation is probably ideal for a sprawling, geographically divided, multicultural society. But it has disadvantages for foreigners who assume that laws exist to be followed. For example, comprehensive building codes do not exist in all areas of the Philippines, and where they are present, they may not be strictly adhered to or enforced.

Curiously, this does not prevent companies from adopting extensive in-house regulations for their employees. This reflects the difficulty that a supervisor has in disciplining an employee who is probably related to several company employees (or even related to the boss). By detailing punishments for various infractions, the manager stays at a dignified distance from any necessary disciplinary action.

Great inequalities exist in the Philippines. The majority of the population is poor. But mobility (or the hope of mobility) exists. The most important influence on Filipinos is the family. Nepotism is common and is not considered to be detrimental.

*Know Before You Go

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The Philippines is prone to disasters. Many are natural events, such as volcanoes, floods, mudslides, earthquakes, and typhoons. But some are within human control, like boat accidents. If you are considering taking a ferry, examine it closely—if it looks unsafe or overcrowded, seek alternative transportation. Whatever your travel plans, be sure to obtain medical evacuation insurance.

To avoid the monsoon season, try to schedule your visits between September and May. Avoid major Catholic holidays as well, as many Filipinos will observe Christmas and Easter celebrations.

Value Systems: The Basis for Behavior

The culture of the Philippines is rich and diverse. China, Islam, Spain, and the United States all left their marks. The following three sections identify the Value Systems in the predominant culture—their methods of dividing right from wrong, good from evil, and so forth.

Locus of Decision-Making

Individuals act in the context of a group (the family is the most important group). Thus, they must seek the consensus of the group, because the individual rarely feels that he or she has the final say on anything. Decisions are made from a relational perspective. Filipinos must get to know you, and this involves asking about your family and personal background. Rather than presenting their own ideas, they more often react to the input of others. It is difficult for them to be confrontational and give an outright “no.”

Sources of Anxiety Reduction

The nuclear and extended family is the main source of support and stability. The whole family may be shamed by the action of one member. Much of the stability of life is found in the adherence to tradition, especially the observance of rituals that maintain relationships. Many of these are connected with religion. Interpersonal relationships bring with them a sense of obligation. Reciprocity in relationships is practiced on all levels, and paying one’s obligations binds the persons involved more closely.

Philippines

Philippines

●3 Business Practices

Punctuality, Appointments, and Local Time

●Time is malleable. Foreign executives are expected to be on time to business meetings. Filipinos tend to be reasonably punctual.

●Everyone, even a foreigner, is expected to be late for social events. But the exact measure of the delay depends upon the status of each person. (The highest-ranking person should arrive last.) Rather than try to decipher the ranking of each party guest, foreigners should just ask their host (in private) what time they should actually arrive.

●The exception to the socially correct delay is the Filipino wedding. Guests are expected to arrive on time. Only the bride may be late.

●Appointments can be scheduled far in advance of your arrival in the Philippines.

●English is the language of most business transactions and virtually all business or government correspondence.

●Without introductions, it is very difficult to meet decision-makers. You will end up scheduling many appointments with subordinates. Not only will you have to progress through levels of influence, but you must progress through levels of formality—from introductions at social events, to semiofficial luncheons, to scheduled business meetings.

●A skilled representative is often hired to cut through several levels of management to get to the decision-maker.

●Midmornings, midafternoons, or late afternoons are usually best for appointments.

●The official national Independence Day holiday is June 12th, which was the date of declaration of independence from Spain (in 1898). July 4, 1946, was their date of independence from the United States.

●The Philippines is eight hours ahead of Greenwich Mean Time (G.M.T. +8), or thirteen hours ahead of U.S. Eastern Standard Time (E.S.T. +13).

Cultural Note

Filipinos are strong believers in forging relationships and maintaining pakikisama (smooth relations) at all costs. Confrontation is unthinkable and a sign of disrespect. Part of this process is the utang na loob (reciprocity) system whereby one business (or political) connection leads to other, more lucrative, deals. Acceptance of a favor or reference will call for a larger one in return. Beware the Filipino bearing gifts—a simple “thank you” will not suffice.

Philippines

Filipinos may smile or laugh in situations that westerners consider inappropriate. Smiles hide embarrassment and discord. Filipino businessmen may laugh at the most serious part of a business meeting, and a Filipino physician may smile while telling a patient he is seriously ill.

While foreigners are not expected to smile as much as Filipinos, they are expected to restrain their temper. As in other parts of Asia, it is considered shameful to express anger in public; a person who loses his or her temper is not respected.

Furthermore, because the Philippines is a more violent country than Japan, Thailand, etc., expressing anger at someone can easily provoke a similar response. Foreigners can unintentionally push a Filipino into a public outburst, as the Filipino feels he must act to regain his honor—whatever the cost. If you must reprimand a Filipino employee, do it calmly and in private.

Business Entertaining

●Food is vitally important in Filipino culture. Social occasions always involve food. In reality, the standard Pilipino greeting “Kumain ka na ba?” translates as “Have you eaten?”

●Celebrate the conclusion of a business deal by inviting your Filipino partners to a restaurant. The person who issued the invitation always pays—unless it was a woman, in which case most Filipino businessmen will insist upon paying.

●Invite the wives of your business partners to dinner, but not to a luncheon.

Expect to be invited to dinners and parties at the home of your Filipino partner (unless he or she is Chinese; Chinese rarely entertain at home). Such parties traditionally have numerous guests, including many relatives. Remember to show respect for elders. You may or may not be individually introduced to everyone.

●Most households have servants, including a cook. Compliment the hostess on the decor, but be aware that she probably did not prepare the food herself.

●Desserts are very popular in the Philippines at both lunch and dinner. If you are hosting a luncheon, be sure to provide a dessert.

●Social events often end with dancing and singing. Expect to be invited to sing.

●Despite boisterous partying and hard drinking (by men), Filipinos find public drunkenness shameful. Do not get out of control.

Cultural Note

Never appear too eager to begin eating at a party; allow the hostess to ask you several times to sit down. A person who jumps at food is considered uncouth and greedy.

This behavior holds true for social invitations also. Invitations must be extended multiple times, and Filipinos will probably respond with a polite“yes” without feeling committed to attend. Reconfirm the invitation at least once. Do not be surprised if someone declines via a third party. You can try sending out written invitations with an RSVP, but because Filipinos feel honor-bound by written commitments, few will respond.

Titles/Forms of Address

●Most people you meet should be addressed with a title and their surname. Many professionals have titles, because Filipino companies may reward employees with titles instead of additional pay or responsibilities.

●Persons who do not have professional titles should be addressed, in English, as “Mr.,” “Mrs.,” or “Miss,” plus their surname.

●Wives of persons with important titles are sometimes addressed as “Mrs.” plus the husband’s title (e.g., Mrs. Senator or Mrs. Mayor).

●Upper-class Filipinos may follow the Hispanic tradition of having two surnames: one from their father, which is listed first, followed by one from their mother.

●Most Filipinos have nicknames, many of which sound incongruous to foreigners. Once a Filipino invites you to address him or her by a nickname, you are expected to do so. An example is the recent vice president of the Philippines, Manuel de Castro, who went by “Noli.”

●After such an invitation, you should invite a Filipino to address you by your nickname. (If you don’t have one, you might like to make one up).

●Flattery by means of “verbal promotion” is common in the Philippines. A police officer may be referred to as “Captain,” a police captain may be called “Major,” and so on.

Gestures

●A great deal of information can be communicated via eye contact and eyebrow movement. Filipinos may greet each other by making eye contact followed by raising and lowering the eyebrows.

●A traditional Filipino may demonstrate respect upon greeting an elder by placing the elder’s hand or knuckles on his or her forehead.

●Because of the years of U.S. military presence in the Philippines, most North American gestures are recognized.

Philippines

Dress

●Because of the heat and humidity, business dress for Filipinos is often casual: dark trousers and white, short-sleeved shirts for men, without a tie; white long-sleeved blouses and skirts or pantsuits for women. Despite this simplicity, these clothes will be neat, clean, and fashionable. Filipinos are very style conscious.

●As a foreigner, you should dress more conservatively until you are sure what degree of formality is expected. Men should expect to wear a suit and tie; businesswomen wear white blouses and dark suits, pantsuits, or skirts.

●Men may wear a business suit for formal occasions, such as the theater, a formal dinner party, and so forth, but women are expected to wear a cocktail dress. Long evening gowns are required only on rare occasions, such as diplomatic functions.

●Neither men nor women should wear shorts or sandals in public, except at the beach.

Because Filipinos are so competitively fashionable, some offices require their workers to wear uniforms.

Cultural Note

Filipinos consider everyone worthy of respect. The more important you are, the more you are expected to be humble and generous. Even the requests of a Filipino beggar are rejected with the phrase “Patawarin po” (Forgive me, sir). The Filipino is literally apologizing to the beggar for not giving him anything. Never brusquely dismiss anyone in the Philippines.

Philippines